| Preparing for college can be one of the most exciting | | | | Stafford Loans are offered directly from the federal |
| and challenging times of a person's life. Deciding on | | | | government, and are also offered through the use of |
| how you'll finance your education is certainly one of a | | | | a private lending institution. Depending on the college |
| student's larger challenges. Obviously, you should | | | | you'll attend, you may have the option of taking |
| exhaust such options as savings, grants, and | | | | either a direct federal Stafford Loan, or taking the |
| scholarships first. But when those options fall short of | | | | same loan by using a private lending institution as an |
| your needs, a student education loan is a logical | | | | intermediary. With some schools you may have both |
| choice to fill in the gap. | | | | options. With regard to private lenders, certain |
| Student loans come in a variety of flavors, with loans | | | | colleges may have specific institutions that they |
| tailored for students with exceptional need, and loans | | | | regard as 'preferred lenders,' but remember that you |
| for the needs of average students. There are even | | | | have the option to seek your own private lender for |
| loans specifically designed for medical students. There | | | | a Stafford Loan. |
| are also federal and private versions of these loans. | | | | If you find that grants, scholarships, and federal |
| It is easy to understand how a student would feel | | | | student loans don't cover your needs, private |
| overwhelmed with so many education financing | | | | student loans are always an option. Private student |
| options. But like most things in life, there's a method | | | | loans are a good value, but they generally feature |
| to the madness. And with just a little insight into the | | | | slightly higher interest rates than their federal |
| pros and cons of each loan type, students and their | | | | counterparts, and these rates are generally variable. |
| parents can see more clearly the options that are | | | | Because private student loans are not |
| best suited for an individual student's needs. | | | | federally-backed, you will likely find that you will need |
| Of all student education loan options, the one with | | | | someone, such as a parent, to co-sign for you. Even |
| the most attractive terms is the Perkins Loan. Perkins | | | | if your credit allows you to secure financing on your |
| Loans have an incredibly low, fixed interest rate of 5 | | | | own, having a cosigner is a very wise choice, since |
| percent. These loans also have a longer "grace | | | | this can lower your loan's interest rate. Lowering this |
| period" - the time allowed after leaving school before | | | | interest rate, even by a fraction of a percent, can |
| payment is required. Perkins Loans offer a 9-month | | | | make a major difference in lowering the total amount |
| grace period, as opposed to 6 months with a | | | | of money you'll have to repay on the loan. |
| Stafford Loan. Another huge benefit of Perkins Loans | | | | Unlike federal loans, private student loans may require |
| is that they don't begin to accrue interest until after | | | | that you begin making monthly payments while still in |
| you have left school. | | | | school. These payments may be in some reduced |
| Your Perkins Loan may also qualify for Loan | | | | form during this time, such as an interest-only |
| Cancellation, which could pay back a portion, or all, of | | | | payment. Even if your particular loan doesn't require |
| your student loan. Federal Loan Cancellation is offered | | | | any type of repayment while in school, it's still a good |
| to graduates who agree to work in high-need areas, | | | | idea to send what you can, when you can. Even |
| such as agreeing to teach in a designated low-income | | | | small irregular payments, made ahead of time, can |
| school. The downside of Perkins Loans is that they're | | | | have a huge effect on lowering the total amount |
| not available for everybody - these loans are | | | | you'll have to repay. |
| designed for students with "exceptional need." | | | | Student loans, especially the federally-backed |
| If Perkins Loans are not an option for you, then | | | | versions, are a great value for students and their |
| Stafford Loans are the next best thing. Stafford | | | | parents when other funding options aren't enough. |
| Loans offer benefits similar to Perkins Loans, with | | | | It's true that the many different types of student |
| interest rates currently running in the 5 to 7 percent | | | | loans can be confusing to sort through. But more loan |
| neighborhood - still very reasonable, as loans go | | | | options means you're more likely find a fit that is |
| these days. Like Perkins Loans, Stafford loans don't | | | | better for your specific needs. And by having a basic |
| require repayment until after you leave school or | | | | knowledge of the various education financing options |
| drop below half-time student. They also feature a | | | | available, it will be much easier to find the fit that's |
| "grace period" of six months before payments must | | | | right for you. |
| begin. | | | | |